Board Report #01-11

2001-02 Program Reduction Plan

2001-2002 BUDGET - 5% GPR REDUCTION

The Higher Educational Aids Board has been asked to develop a plan that would accommodate a 5%
reduction in GPR appropriations. Prior to the current biennial period when a similar request was
made, HEAB submitted a plan that eliminated smaller programs and held harmless larger programs the
agency administered. Applying this approach to 2001-02, leaving in existence the Academic Excellence
Scholarship Program, Talent Incentive Program Grant, Wisconsin Higher Education Grant Programs, and
the Wisconsin Tuition Grant Program, would reduce the 2001-02 appropriation by $2,573,900 when
$3,156,775 is needed. During the last biennial budget request HEAB submitted a plan that cut each
program across the board by 5% since each program was considered an equal priority.

Since increases in funding for a number of the smaller programs was included in the request that
was submitted in September, 2000 for 2001-03 (with the increases identified as a priority);
following a past approach of eliminating smaller programs could not be supported by what has already
been submitted for 2001-03 to date. There is also the issue that by eliminating the smaller
programs, the necessary 5% reduction would not be met and further reductions would still be needed
in the larger programs.

Therefore, I recommend that HEAB submit a plan that includes a possible 5% across the board cut
for the reasons stated above and because it would better reflect the board's current program
priorities.

The following outlines a possible plan to meet a potential 5% 2001-02 budget reduction:

PROGRAM

2000-01

2001-02

Tuition Grant (B)

21,038,600

19,986,670

Wisconsin Higher Education Grant-WTC (B)

13,201,900

12,541,805

Dental Education Contract (A)

1,167,000

1,108,650

Wisconsin Higher Education Grant-UW (B)

18,900,300

17,955,285

Minority Undergraduate Grant (B)

693,100

658,445

Minority Teacher Loan (A)

240,000

228,000

Handicapped Grant (B)

123,800

117,610

Talent Incentive Grant (B)

4,503,800

4,278,610

Teacher Education Loan (A)

250,000

237,500

Teacher of the Visually Impaired Loan (B)

100,000

95,000

Academic Excellence Scholarship (S)

2,917,000

2,771,150

TOTAL

63,135,500

59,978,725

PLEASE NOTE: This chart reflects a 5% GPR decrease for 2001-02. It does not include the
MN-WI Reciprocity Program in which GPR spending is projected to be zero. Nor does this chart include
the Indian Student Assistance or the Wisconsin Higher Education Grant-Tribal Programs, which are
both funded through gaming funds rather than GPR.